Marketlicious

My anticipation of a correction on the current rally which I mentioned on the previous post did not come true. The market did fell on Monday but I don’t think that could be considered a meaningful correct in comparison to the magnitude of the current rally. Hence, I still look forward a correction to come very soon.



The S&P 500 Index made another new high yesterday. It pulled back in the final hour to close right at the 61.8% Fibonacci Level. What’s more interesting is, we have a price/oscillator divergence. The index made a higher high while both slow stochastic and RSI have a lower high. This is also known as a Bearish Divergence. In fact, divergence signals are also seen in the Dow and NASDAQ. From what I have observed so far, divergence signals are very reliable on both daily and intra-day charts. While the index may not be falling as hard, I am still expecting it to go lower from here for few days to come. If my expectation is right, I shall start to see profit again with my Bear Call position on SPY which expires slightly more than 2 weeks from now.

Coincidently, today is the first Friday of April which we will expect the announcement of Non-Farm Payroll. Is this going to be the first test of this rally? Let’s see.